Hi Cogs, good to see MYG have reduced the open pit model. I...

Hi Cogs,

good to see MYG have reduced the open pit model. I suspect the all in cost would have blown out due to dealing with the difficulties of bulk earthworks when mining narrow vein deposits.

The stated all in cost of $723 looks realistic now they are focussing on underground. You will find underground mining costs are much easier to quantify in this case, especially since the ore is hosted between basalt pillars. Good ground conditions are a massive plus for keeping mining costs under control.

They look to have done the numbers on moving the mill to the mine. Good move. You may only be looking at 10 to 15c per tonne per km for cartage. Might not sound a lot but over the mine life its massive, especially if the mine life is extended which we all suspect will happen at depth.

The exploration plan worries me, Its common for directors to waste  money trying to build a legacy instead of drilling out a resource in an orderly manner. Hopefully this is not the case.
I would prefer for MYG to prioritise the current resource. I would jig the mine plan to allow early access for underground exploration drilling. They may have already done this?

Very happy with the new improved mine plan. I would expect a takeover if the gold price recovers slightly due to Deflector's margin being better than most operating gold mines in WA.

71c4